USAA vs State Farm: Which is Better for You?
Read on to see which company is best for you.
USAA or State Farm: Which company is best for you?
USAA and State Farm are two very popular auto and home insurance providers, but each company has its own unique features. For one, USAA isn't available to just anyone. USAA membership is limited to members of the armed forces and certain family members. State Farm, on the other hand, is widely available and holds the largest share of car insurance of any company in the U.S. with a market share of over 16% according to the Insurance Information Institute.
Take a look at our in-depth comparison of USAA and State Farm to see which company comes out on top.
USAA car insurance
USAA is one of the most popular options for car insurance in the United States. The company is unique in that customers must first become members of USAA in order to purchase a policy. Membership is exclusive to individuals in the armed forces and certain family members. In general, the company receives stellar ratings from customers and third-party rating agencies. USAA came out on top of The Zebra Customer Satisfaction Survey.
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State Farm car insurance
As the largest car insurance company in America, State Farm offers auto insurance options suitable for most drivers. Furthermore, the company generally receives positive reviews from both customers and third-party rating agencies, including a top three ranking in The Zebra Customer Satisfaction survey.
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Which company comes out on top?
Tie
Both USAA and State Farm are among the top-rated auto insurance companies. While USAA may have better ratings and cheaper rates overall, it's exclusivity means that State Farm is likely to be a better match for a broader selection of drivers.
USAA vs. State Farm: car insurance rate comparison
Affordability is one of the biggest considerations when shopping for a new car insurance policy. Insurance premiums are calculated using many factors, including your driving record, state laws and your credit score — at least in most states.Â
To help you compare pricing info from USAA and State Farm, we've found average rates based on a few different factors. Dive into the tables below to get a sense of which company could be most affordable for you.
USAA has the cheapest rates at $106 per month. However, State Farm is only marginally pricier, coming in at $108 per month.
USAA vs. State Farm: pricing by credit score
For those with very poor credit, USAA is significantly cheaper than State Farm. Typically, USAA offers better rates than State Farm for drivers with credit scores lower than 580. Insurance shoppers with exceptional credit — a score of 800 or better — can likewise find cheaper rates through USAA. Check out typical insurance rates by credit level for State Farm and USAA below.
RATES BY CREDIT LEVEL: USAA vs. State Farm
| Credit level | USAA avg. annual premium | State Farm avg. annual premium |
| Very Poor (300-579) | $2,682 | $3,522 |
| Fair (580-669) | $1,247 | $2,003 |
| Good (670-739) | $1,057 | $1,613 |
| Very Good (740-799) | $910 | $1,451 |
| Exceptional (800-850) | $840 | $1,260 |
Auto insurance data methodology
The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:
- $50,000 per person/$100,000 per incident for bodily injury liability
- $50,000 per incident for property damage liability
- $500 deductibles for collision and comprehensive coverage
To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.
In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.
USAA vs. State Farm: rates for high-risk drivers
If your driving record an at-fault accident, speeding violation, reckless driving violation or DUI on your driving record, USAA is likely a better choice than State Farm. Every car insurance company will handle driving offenses differently, so don't be afraid to shop around and get quotes to find out which insurance company suits you.
RATES BY CITATION: USAA VS. STATE FARM
| Citation | USAA avg. annual premium | State Farm avg. annual premium |
| At-fault accident (damage < $1,000) | $1,304 | $2,849 |
| At-fault accident (damage > $1,000) | $947 | $1,524 |
| DUI/DWI | $1,952 | $3,854 |
| Reckless driving | $1,472 | $2,895 |
| Speeding ticket | $1,124 | $1,983 |
USAA vs. State Farm: rates by age
Insurance companies use age to help estimate the level of risk that a driver poses. Policies are then priced accordingly. Auto insurance policies are typically most expensive for teen drivers — because of their inexperience — and are often much more affordable for drivers aged 25 or older. Because every insurance company rates ages differently, it's best to shop around and find the right policy for your needs.
In general, teen drivers should choose USAA over State Farm: USAA offers average yearly savings of nearly $3,000 when compared to State Farm.
RATES BY AGE: STATE FARM VS. USAA
| Age bracket | USAA avg. annual premium | State Farm avg. annual premium |
| Teens | $2,864 | $5,820 |
| 20s | $1,261 | $2,379 |
| 30s | $963 | $1,585 |
| 40s | $957 | $1,587 |
| 50s | $889 | $1,558 |
| 60s | $845 | $1,485 |
Affordability aside, USAA and State Farm each carry pros and cons, including their discount programs, add-ons, customer satisfaction ratings, and financial stability. Be sure to get quotes and compare rates before purchasing a policy.
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Ratings comparison: USAA vs. State Farm
Both USAA and State Farm are hugely popular insurance companies. Each has a long history of third-party ratings and customer satisfaction scores. We've compiled a number of recent results from many of these below. Included are scores for financial strength, customer complaints, and overall customer satisfaction. We also list The Zebra's internal reviews and the results of our Customer Satisfaction Survey.
| Ratings comparison | USAA | State Farm |
|---|---|---|
| Financial strength (A.M. Best) | Superior | Excellent |
| JD Power (claims satisfaction) | Excellent | Above average |
| JD Power (customer satisfaction) | Excellent | Above average |
| NAIC rating | Excellent | Above average |
| The Zebra's editorial review score | 5/5 | 4.5 |
| The Zebra's Customer Satisfaction Survey | 4.6 | 4.5/5 |
Which company scores best?
USAA
As one of the most highly-rated insurance providers in the country, USAA was the top carrier in almost every category. However, State Farm consistently ranked near the top, coming in third place overall.
The Zebra's Customer Satisfaction Survey
To get a better sense of how the overall customer experience, The Zebra conducted an independent survey taking a look at many different factors. Below you'll find the results for each company.
USAA topped the list as the best auto insurance carrier with an overall score of 4.6, winning in every category except online experience. Here are some other highlights:
- Top-rated overall
- Highly rated by both male and female respondents
- Highly rated by drivers in all age groups
State Farm came in third place overall with a score of 4.5. Find more of the survey highlights below.
- Scored well among younger drivers
- Second place for claims satisfaction
- Third place for ease, customer service, trust and willingness to recommend
The Zebra Customer Satisfaction Survey methodology
Findings are based on an online quantitative survey of 4,794 current U.S. auto and home insurance customers, with Census-balanced sampling by age, gender and region. Categories with n=<20 responses are considered insufficient sample size and are not reported. This survey was developed by The Zebra and executed by independent research firm Maru/Blue in 2023.
USAA vs. State Farm: discount comparison
Cost-conscious shoppers will likely be interested in car insurance discounts. Discounts can be a great way to lower car insurance costs. Compare how each company's discounts stack up below.
When shopping around for a new policy, always ask about what discounts you are eligible for to potentially find additional savings.
Telematics options: USAA vs. State Farm
USAA and State Farm offer policyholders telematics options. These apps can measure your driving habits to calculate the level of risk and provide a more accurate rate. We compiled a rundown of available options from both carriers below to help you find which company might have a telematics option that's right for you.Â
SafePilot offers customers the chance to have their driving habits monitored in exchange for cheaper car insurance rates. A discount of 10% is offered just for signing up, with up to 30% savings possible for safe drivers at policy renewal.
Drive Safe & Save is the telematics option available from State Farm. This can be a great option for drivers with safe driving habits. Low-mileage drivers also stand to benefit from the program. The company claims that it can save customers up to 50% on premiums, though lower-mileage drivers are most likely to see these types of savings. The program is available in most states.
Zebra Tip: Explore telematics if you're a safe driver
Both USAA's SafePilot program and State Farm Drive Safe & Save get good reviews overall, including in the best online experience section of The Zebra Customer Satisfaction Survey. If you are a safe driver, either of these programs could potentially help you save money.
Roadside assistance: USAA vs. State Farm
A roadside assistance program can help you get back on the road sooner and with less hassle. Have a look below to see how USAA and State Farm compare for roadside assistance options.
USAA
USAA offers the following roadside assistance services to policyholders:
- Towing
- Flat tire changing
- Fuel delivery
- Jump-starts
- Lock-out service
- Stuck vehicle assistance
Another perk of USAA membership is that these services are also available at reduced rates to policyholders without roadside assistance on their policy.
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State Farm
State Farm's Emergency Road Service offers the following:
- Mechanical labor at the place of breakdown
- Towing of your vehicle to a repair facility,
- Removal of a stuck vehicle
- Delivery of gas or oil
- Assistance with changing a tire or a jumpstart
- Locksmith services
USAA vs. State Farm: home insurance
As with their auto insurance offerings, USAA and State Farm are both popular providers of home insurance. Again, USAA homeowners insurance is limited to members of the armed forces and certain family members. To help you compare how the two companies stack up, we've compiled take information from a number of sources to aid in your decision.
USAA homeowners insurance review
Similar to USAA's car insurance, customer eligibility is limited to those in the armed forces and their families. Still, the company's coverage remains highly rated and quite popular. Most customers will find the coverage suitable to their needs, with a good number of add-ons and discounts available.
USAA topped every category in homeowners portion of The Zebra Customer Satisfaction Survey, indicating a strong focus on the customer.Â
- The Zebra Customer Satisfaction Survey — 4.6/5: USAA topped every category of our homeowners customer satisfaction survey.
- J.D. Power Rating — Among the Best: J.D. Power rates USAA above average in claims and customer service satisfaction.
- Financial strength — Superior: A "Superior" financial strength rating by A.M. Best shows USAA's ability to pay out claims is solid.
- NAIC Rating — Excellent: Regarding USAA, the National Association of Insurance Commissioners (NAIC) received relatively few customer complaints when compared to the market median.
State Farm homeowners review
State Farm provides robust policy types and plenty of add-on coverage, making them a solid option for both standard homeowners and those with unique coverage needs. That said, State Farm's average premiums are typically higher than average. Customers looking for a wide selection of homeowners discounts may also want to search elsewhere, as State Farm currently has only four discount options at present.
Still, State Farm's home insurance options receive good scores from most rating agencies and the company took fifth place overall in The Zebra Customer Satisfaction Survey. Learn more about the company's home insurance in our review below.
- The Zebra Customer Satisfaction Survey — 4.4/5: State Farm was given an above-average rating among the top 15 home insurance providers surveyed.
- Claims satisfaction (J.D. Power Rating) — Below average: J.D. Power's most recent study rated State Farm as just shy of the industry average for property claims satisfaction.
- Customer satisfaction (J.D. Power Rating) — Above average: State Farm was awarded an above-average rating for customer satisfaction in J.D. Power's Home Insurance Study.
- Financial strength — Excellent: A.M. Best rated State Farm as having excellent financial viability, signaling its ability to pay for claims.
- NAIC Rating — Average: State Farm's home insurance received an average amount of complaints as logged by the National Association of Insurance Commissioners (NAIC).
Which company comes out on top?
USAA
USAA has a strong reputation for taking care of its customers. This, paired with affordable rates and a wide selection of coverage options, makes USAA a great choice for eligible customers.
USAA vs. State Farm: home insurance rate comparison
USAA's average homeowners insurance rate is $127 per month. The average rates for State Farm are slightly cheaper at $113 per month. Remember that each insurer underwrites policies differently, meaning that you are very likely to get a different rate from one company to another.Â
Furthermore, your individual rates could vary dramatically from the average depending on a number of factors. This can include your previous claims history, crime in your area as well as how close you live to a fire station. Because of this, we suggest that you shop around when looking for home insurance quotes.
State Farm is cheaper than USAA on average, with average rates of $113 per month compared to USAA's average of $127 per month.
Homeowners insurance data methodology
The homeowners insurance rates published in this guide are based on The Zebra's analysis of the cost of home insurance in every U.S. ZIP code. These rates are based on a sample user profile: a 45-year-old married homeowner living in a 2,500-square-foot single-story home built in 2011 with these coverage levels:
- $200,000 for the dwelling
- $20,000 for other structures
- $100,000 for personal property
- $100,000 for personal liability
- $1,000 deductible
To generate pricing for particular rating factors, we adjusted the homeowner profile based on common pricing factors used by major home insurance companies. These factors include location, coverage limits, claims record and others.
USAA vs. State Farm: homeowners discount comparison
Most insurance companies offer homeowners discounts to eligible policyholders. These can lead to savings for those who meet certain criteria, such as having a newer home or being claims-free. Take a look at how the discount options from USAA and State Farm compare below.
| Discount comparison | USAA | State Farm |
|---|---|---|
| Claims free | ✓ | |
| Recent home buyer | ||
| Multi-policy | ✓ | ✓ |
| Early signing | ||
| Newer/more durable roof | ✓ | |
| Protective devices (smoke/burglar alarms, etc...) | ✓ | ✓ |
| Paid in full | ||
| Early signing | ||
| Auto pay | ||
| Newer home | ✓ | |
| Renovated home | ||
| Senior citizen |
Other insurance products and bundling options
USAA and State Farm both offer multiple lines of insurance that can be bundled together. This can streamline your insurance policies and also lead to potential savings. Along with auto and home, customers may be able to add life, pet, or even small business coverage from USAA and State Farm. Take a look at the additional coverage types available from each company below.
| Other products | USAA | State Farm |
|---|---|---|
| Boat insurance | ✓ | ✓ |
| Condo insurance | ✓ | ✓ |
| Life insurance | ✓ | ✓ |
| Homeowners insurance | ✓ | ✓ |
| Renters insurance | ✓ | ✓ |
| RV insurance | ✓ | ✓ |
| Motorcycle insurance | ✓ | ✓ |
| Mobile home insurance | ✓ | ✓ |
| Umbrella | ✓ | ✓ |
| Offroad vehicles and ATVs | ✓ | ✓ |
| Classic car | ✓ | ✓ |
| Small business | ✓ | ✓ |
| Farm and ranch | ✓ | ✓ |
| Pet | ✓ | ✓ |
Find the best insurance policy for your needs.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.